What act imposes restrictions on how a state determines eligibility for surplus lines coverage?

The Dodd-Frank Wall Street Reform and Consumer Protection Act is significant because it introduced various reforms to financial regulations in response to the 2008 financial crisis, affecting many aspects of financial services. One key provision of this act pertains to the regulation of surplus lines insurance, specifically emphasizing the need for states to follow certain guidelines when determining eligibility for surplus lines coverage.

Under this act, states are required to implement a uniform definition of "surplus lines," as well as to ensure proper licensing and eligibility criteria for insurers. The intent is to foster a more coherent framework for insurance regulation, enabling better consumer protection while still allowing access to surplus lines coverage. This legislation underscores the importance of state-level oversight in maintaining standards, ensuring that consumers are adequately protected when seeking coverage from non-admitted insurers.

While other options may involve aspects of consumer protection or insurance regulation, it is the Dodd-Frank Act that specifically addresses the criteria for determining eligibility in the context of surplus lines, making it the most pertinent choice in this case.